Casino revenue was down but Canterbury Park still delivered solid second quarter 2024 financial results, with net revenues and Adjusted EBITDA of $16.2m and $2.4m, respectively, both in line with the prior-year performance. The company said it was hoping to lift its casino results by driving consistent visitation from its high-end players.
The decrease reflects a decline in casino revenue of 5.2 per cent, or $538,000, as compared to the three month period ended June 30, 2023. The decline in casino revenue was primarily due to a decrease in table games drop, partially offset by increases in Pari-mutuel, Food & Beverage and Other revenue of 5.2 per cent, 3.6 per cent and 13.6 per cent, respectively, compared to the same period a year ago which were driven in part by having two additional live race days as well as higher out-of-state handle due to increased field sizes.
Randy Sampson, President and Chief Executive Officer of Canterbury Park, said: “Casino revenue declined year-over-year primarily reflecting ongoing efforts to optimize our marketing re-investment program. We are focused on optimizing cash flow from our Casino operations by driving more consistent visitation from our high-end players and limiting short-term swings in volume. The collective 6.7 per cent year-over-year increase in Pari-mutuel, Food & Beverage and Other revenues in the 2024 second quarter offset the decline in Casino revenue as we had two additional live race days compared to last year and benefited from our ongoing efforts to position our event center as a leading destination for events of all sizes in the region. The adjusted EBITDA margin of 14.9 per cent in the quarter increased from 14.6 per cent for the same period in 2023, again highlighting our Company-wide focus on initiatives to operate efficiently and generate cash flow. Overall, our second quarter 2024 financial results continue to demonstrate the improvement in our operations that we are delivering compared to the pre-pandemic periods.
“Our long-term vision for Canterbury Commons to be transformed as both a regional destination for ‘Live, Work, Stay, and Play’ and as a driver of new revenue sources and economics for the Company continues to gain momentum with development progress being made every day. Swervo Development Corporation’s (Swervo) amphitheater remains on schedule for a Summer 2025 opening as does construction of the 10,000 square foot commercial building in our Winners Circle development that will be home to BBQ and pizza restaurants and a fitness center, all of which are expected to open within the next few months. Greystone, our partner in the Winners Circle development, is also working through the pre-development process for a second 28,000 square foot commercial office building that would complement their headquarters at Canterbury Commons. We expect these commercial developments will add daytime traffic, bringing energy to the Winners Circle and our overall Canterbury Commons development.”
